India has become the most sought after destination for fintech investments after the United States and the United Kingdom. As proof for this statement, the fintech investments in 2018, USD1.9 billion, nearly doubled to USD3.7 billion in 2019. Similarly, the number of deals also increased from 193 in 2018 to 198 in 2019.
The most preferred funding choices were centered at the payments companies. This is evident due to the fact that the capital nearly tripled to USD 2.1 billion in 2019 from USD 660 million in the previous year. On the other hand, funding to the insurtech sector also rose 74% amounting to USD 510 million in 2019.
Looking at the big picture, the vast majority of funds, about 58% of the whole, went into payment startups; insurtech companies could attract 13.7% of the fundings, and those fintechs into lending accounted for 10.8%.
A major reason for the investors to get attracted towards the payments firms in India is that most of the solutions they have created are original and India rooted. Though these solutions are inspired by foreign markets, they are applicable to the Indian ecosystem and are working well.
India’s fintech sector has been a lot more active in recent years and is creating hope. The steady flow of funds reflects the investors’ confidence in the potential of the country’s fintech companies. Since there is an increase in the number of deals and the deal value, it can be considered as a positive indicator of what one can expect from the sector in the days to come. Investors are looking forward to the development of cutting-edge financial technology for the good.
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